HELSINGIN SANOMAT international

Car sharing feasible even for businesses

By Riitta Astikainen
Photo: Hannes Heikura / HS

Cellphone, lights, action! Jouni Sintonen's GSM has spoken and the car door opens.
Cellphone, lights, action! Jouni Sintonen's GSM has spoken and the car door opens.

A new use for mobile phones was recently demonstrated in Sonera's parking lot in the Vallila district of Helsinki. A quick dial and - presto! - Jouni Sintonen, a department head with the telecoms operator, remotely opens the door of a brand-new grey Ford Focus. The actual keys to the car are in the glove compartment.
   The technique is new, as is the concept behind it. The car is not Sintonen's or Sonera's, nor is it even leased by Sonera - it belongs to a new car sharing company, City Car Club, that Sonera has recently become a member of. The car is supplied by Stockmann Auto and financed by Ford Financing.
   Car sharing has proven to be quite a success in several central European cities, and now the concept is being imported to Finland.
   Sonera's Information Logistics unit is one of the new company's first customers. It plans to start off with two cars.
   The unit's personnel is scattered all over Finland. Several of those who come to Helsinki do not have a car, and getting to meetings all over the capital can be a hassle. Car sharing guarantees that a car will be available whenever it is needed, and the costs are agreed on in advance.
   Sonera is not only a customer, it is also a party to making the concept work. The company's engineers came up with a technical solution to the most inconvenient problem - how to deliver the key to the next user. In Central Europe the keys are often kept in a locked box close to the parking places.
   The Sonera cars are fitted with a GSM-based device, which is rather like a two-way alarm system that opens and locks the door with a phone call. This arrangement saves both time and money, and even pleases the insurance company, as it works as a burglar alarm as well.
   As the technique can be copied easily in just about any corner of the planet, it is also very export-friendly.
   On the continent, the large car sharing companies have concentrated on private customers, but City Car Club in Finland will direct a third of its business to corporations. For companies based in downtown Helsinki, car sharing is a cheaper alternative to leasing or the use of a private car. Parking expenses can run up to FIM 1000-2000 per month. On top of that are the leasing fees, insurance, and service costs.
   Sonera, for example, has 3,000-4,000 employees in the Vallila area, several of whom drive to work only because they might have an appointment elsewhere during the day. Car sharing would eliminate parking problems as the use of privately-owned cars would decrease.
   Car sharing is also a cheaper alternative for the private user if the customer drives less than 10,000 km a year, and when the figure goes down to 6,500 km/year, the savings rack up to around 50%. According to a market research study conducted on behalf of traffic authorities last summer, there are about 25,000-40,000 potential customer households in the Greater Helsinki area. In Finland young people were more open to the idea, whereas in Germany car sharing is popular among the frugal middle-aged.
   This new concept is no patched together job, but based on a carefully-designed network using the latest technology, claims a spokesman at the Ministry of the Environment. There are several advantages to car sharing, although it is unlikely to be an instant hit. But even if only 10-20% of the people in a densely populated area adopted the idea, only a fraction of the cars that they would otherwise have would be needed.

FACT FILE:

  • Car Sharing has been around for about ten years, and some 70,000 people have signed on to the idea. It is most popular in Switzerland, Germany, and Austria. In Finland the first company in the branch will launch its operations on April 17, initially in the Greater Helsinki area.
  • Membership requires an initial sign-up fee of FIM 480 per person and an additional FIM 120 per extra family member. The monthly flat charge is FIM 79, or FIM 129 for families. In addition, users pay for the time used (FIM 16/hour) and kilometres driven (FIM 1.15/km). Fuel costs are included in the price.
  • There is no point applying for membership unless you have had a valid licence for two years or more, and - interestingly - if you do not have an e-mail address.
  • The average customer’s monthly bill is estimated to be around FIM 1,500. This includes 600 km, and accounts for perhaps 11 drives of approximately 4 hours each per month.
  • The car can be reserved from a service number that is manned 24 hours a day. The reservations centre gives the location of the vehicle, either in a parking hall or on the kerb. The company pays the parking charges.

News stories from the Car Sharing Library - just in case you have had trouble grasping what this is all about.

Helsingin Sanomat / First published in print 30.3.2000